Padini has long been overvalued, too high expectations of growth being pricing in amid unrealistic optimism and driven by investors' GREED.
When the sentiment reverse or when market starts to realise its mistake, eventually the market will "correct its past mistake" by bringing down the valuation to its fair value.
So the question now is what is the fair value for Padini? At current price, is their ample margin of error? is it undervalued?
back in the days, i bought Padini when it was pricing at 5-6x PE with yield 4-5%.
that was the time when u know u have found a hidden gem.
ok, it is possible if their future earning slump further, meaning current pe of 6 is equivalent to forward pe of 13 (anticipating future earning plunge)...that's make sense.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
J For Janice
192 posts
Posted by J For Janice > 2018-12-15 15:32 | Report Abuse
Really make me wonder why got so many naked malaysian.